Republic of North Macedonia engaging with the GCF through the - - PowerPoint PPT Presentation
1 st Accreditation Webinar: Direct Access to Climate Finance: Supporting national entities in the Republic of North Macedonia engaging with the GCF through the accreditation process Second Readiness project Aug 12, 2020 Strengthening
1st Accreditation Webinar:
“Direct Access to Climate Finance: Supporting national entities in the Republic of North Macedonia engaging with the GCF through the accreditation process”
Strengthening country capacities for climate change adaptation and mitigation and finalization of country work programme for the Republic of North Macedonia
Aug 12, 2020
Second Readiness project
Mechanism
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Pipeline
Components of 2nd Readiness
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» Initiate the discussion about the different modalities through which national entities can engage with the GCF. » Provide detailed information regarding the GCF accreditation process as one of the access modalities to GCF resources. » Guide national stakeholders on the steps, criteria and requirements to be met if interested in becoming a GCF accredited entity in North Macedonia.
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Strong climate rationale Six Investment Criterias Country Driven Approach Compliace with GCF Policies Completeness of documentation
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GCF Investment Criteria
Strengthening country capacities for climate change adaptation and mitigation and finalization of country work programme for the Republic of North Macedonia
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Financial Instruments
Grants Loans Guarantees Equity
» GCF business model relies on AEs for delivering its mandate and implementing its investments (P/P).
» Accreditation is one of the ways to engage with the GCF. Non-accredited entities can:
delivery partner, entity must demonstrate relevant experience and ability to implement projects. 7
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Accredited Entity vs. Executing Entity
Accredited Entity (AE)
» Develop & submit funding proposal for P/P . » Oversee P/P management & implementation » Deploy & administrate a range of financial instruments » Mobilize private sector capital for blending with GCF and/or own resources
Executing Entity (EE)
» Develop & submit funding proposal through AE. » Execute funding proposals » No need for accreditation but work under supervision & overall management of AE
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GCF Accredited Entities
Strengthening country capacities for climate change adaptation and mitigation and finalization of country work programme for the Republic of North Macedonia
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GCF IN EASTERN EUROPE & CENTRAL ASIA
Strengthening country capacities for climate change adaptation and mitigation and finalization of country work programme for the Republic of North Macedonia
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https://www.greenclimate.fund/accreditation/process
What is the accreditation process?
Thorough assessment of entities institutional arrangement & track record, designed to ensure that entities can manage the Fund’s resources according to international standards.
Who can apply for accreditation?
National, subnational, regional & international public/private entities
When can entities star applying for GCF-AP?
Any time – follow NDA prioritization procedure
Who is the NDA in North Macedonia?
Cabinet of the Deputy Prime Minister in Charge of Economic Affairs and Coordination of Economic Sectors
About the GCF accreditation process
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https://www.greenclimate.fund/countries/north-macedonia
Accreditation Modalities
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Normal track Vs. Fast-track*
Main accreditation stakeholders
» NDA: Strategic oversight + provide Nomination Letter to potential DAE » GCF Secretariat: 1st filter, conduct institutional review & completeness check. » Accreditation Panel: more detailed assessment + recommend conditions for accreditation. » GCF Board: final decision (accredited an entity or withdraw its application)
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Others: CSO Advocacy & watchdog (enhance transparency)
Fit-for-Purpose Approach
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Mandate & track record
Project size
Fiduciary functions
Environment & social risk category
allocation mechanism
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Fit-for-Purpose Approach
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ACCREDITATION STAGES
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The Online Accreditation System (OAS) is a secure internet platform through which applicant submits Application Form. Payment of Accreditation Fee: only after this fee is paid, the GCF Secretariat will conduct the Completeness Check.
STAGE 1 - Completeness check
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STAGE 1I – Accreditation review & decision
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STAGE III – Accreditation review & decision
» Depending on the type of entity, the relationship between the Fund and such entity would take the form of either a legal agreement (contract governed by private law)
a legal arrangement (arrangement governed by international public law). » A contract is typically entered into with a private-sector entity
state-owned enterprise or takes the form.
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Fees are NON-REFUNDABLE, regardless if the the entity is accredited or not OTHER FEES (case-by-case) if the application is reviewed by the GCF Secretariat/AP more than twice
Project Size Basic Fee Additional Fee
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application, irrespective of portion funded by GCF Fee Level for accreditation for Basic Fiduciary Standards +ESS + Gender Fees for Specialized Fiduciary Standard: a) Project Management + b) Grants/funding and, + c) On-lending and/or blending
MICRO (≤ US$10 M) a) Subnational & national entities in developing countries including SIDS and LDCs: no fee b) All other entities: US$1,000 US$500 each SMALL (>US$10 M ≤ US$50 M) a) SIDS and LDCs: NO fee b) Subnational & national entities in developing countries, not SIDS and LDC: US$ 3,000 c) All other entities: US$5,000 US$1,000 each MEDIUM >US$50 M ≤ US$250 M) US$10,000 US$3,000 each LARGE (>US$250 M) US$25,000 US$7,000 each
Accreditation fee
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Total projected costs at time
application, irrespective of portion funded by GCF, Fee Level for accreditation for Basic Fiduciary Standards, ESS and gender Fee Level for Specialized Fiduciary Standard: (i) Project Management, (ii) Grants/funding and, (iii) On-lending/blending SMALL (>US$10 M ≤ US$50 M) a) SIDS and LDCs: no fee b) Subnational & national entities in developing countries, not SIDS and LDC: US$ 3,000 c) All other entities: US$5,000 US$1,000 each Example National DAE General Standards = $3,000 Specialized Standards = $2,000
Example:
A national DAE from North Macedonia wishes to get accredited to manage & implement projects of ≤US$50 millions, under following functions: Basic Fee: Basic Standard, ESS, Gender Additional Fee = Project Management + Grants Award
Example: Accreditation fee
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Background and contact information of the applicant entity Ways in which the entity and its intended P/P will contribute to furthering the
Scope of intended P/P and estimated contribution requested for an individual project or activity
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Basic fiduciary standard
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V. Specialized fiduciary standards
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Environmental and social safeguards (ESS)
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VII. Gender
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GCF Accreditation Application
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1.1 Background and contact information
1.2 Background information on Track Record (P/P)
1.3 Background information on Accreditation by Other Funds or Institutions
General Development and Cooperation – EuropeAid of the European Commission (EU-DEVCO).
Section I: Background & contact information of the applicant entity
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Optional for DAE:
strengthen capacities
support potential subnational, national, regional implementing entities &intermediaries in order to meet GCF accreditation requirements.
Section II: Ways in which the institution and its intended P/P will contribute to furthering GCF’s
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Provide statements on how it intends to contribute
and/or in supporting their CC plans and strategies.
framework + impact areas.
Sector: agriculture, energy, livelihood, etc.), Theme (e.g. mitigation
adaptation), Size (scale
the intended activity, including estimated cost) and, Risk level
Note: take into consideration a Country-driven approach (includes: NDCs, NAMAs, NAPAs, etc.) + GENDER-SENSITIVE APPROACH.
Section III: Information on the scope of intended projects/programmes and estimated contribution requested for an individual project or activity within a programme
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Type of P/P
Estimated maximum contribution amount for a project or activity to be requested from the Fund in US$ Type(s) of financial instrument(s) for intended activities;
Cost
Sources
additional finance, if applicable, for intended activities; Indication of the standards against which the application will be assessed: (e.g. applicable specialized specialized fiduciary standards, ESS risk level).
Other
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Section IV: Basic Fiduciary Standards
4.1 Key administrative & financial capacities 4.2 Transparency and accountability
Assesses the capacity to manage financial resources transparently and in line with the relevant regulations and laws. Ensure entities’ administration and management
and that they have a track record of performing these activities effectively and efficiently. Cover the underlying principles of protection against financial mismanagement and other unlawful practices, to ensure that entities operate ethically, transparently and with full accountability.
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Key Admin inistrative & Fin Financia ial l Cap apacit ities
Section IV: Basic Fiduciary Standards
» Management and administrative capacities, » Financial management and accounting system (IGP) » Procedures in place for internal and external audits » Internal financial controls/control frameworks » Formal procurement standards, guidelines and systems
Tran ansparency & Accountabil ilit ity
» Documented code of ethics » Policy/process disclosure
conflicts
interest
equivalent » Capacity to prevent fraud, financial mismanagement and
» Independent investigation function » Anti-money laundering & anti-terrorist financing
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Based in the applicant's experience & demonstrated track record, entities will have to decide on how they will operate/use the Fund’s resources
Section V: Specialized Fiduciary Standards
Project Management Grant award and/or funding allocation mechanism On-lending and/or blending
Entities that will manage & implement projects directly or indirectly (oversee) through other partners Intermediaries and implementing entities that will provide grants to third parties (e.g. call for proposal) Intermediaries and implementing entities that will use financial resources from the GCF to provide loans (lend or
GCF resources) to
actors or third party
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Examples Project management* Grant award and/or funding allocation mechanisms On-lending and/or blending Implementing P/P using Fund’s resources (grants or loans), where the project is executed by the entity itself o by other entity
Awarding grants to another entity (intermediary)
Managing lines of credit using the Fund’s resources
On-lend resources to other entity
Blending GCF’s resources with other resources (own or
Using Fund’s resources for guarantees or for equity investment
Specialized fiduciary functions
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All institutions need to show that they have project management capacity: » identifying, preparing/formulating and appraising project/programmes, including tendering procedures for proposals, key performance indicators. » Project oversight & control: systems, procedure and overall capacity to prepare project implementation plans, budget, reporting guidelines, budget and timelines. » Monitoring and evaluating, detects, assesses, and provides management information about risks related to projects. Clear guidelines/policies on M&E with defines roles & responsibilities project and entity/portfolio level (separated from project origination & supervision functions). » Demonstrate a project-at-risk system and related project risk management capabilities to flag problems that might affects P/P performance/implementation.
Section V: Project Management
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Assessment of the entity against this standard considers whether the entity is overseeing or implementing P/P.
Entities that will award grants to other actors/parties shall have transparent eligibility criteria & evaluation process + formally documented procedures for awarding grants to recipients, among others:
» Eligibility criteria and procedures for evaluating and awarding grants. » Information on evaluation committees to award or reject grants » Public access to information on beneficiaries and results. » Transparent allocation of financial resources, » Good standing with regards to multilateral funding
Section V: Grant award and/or funding allocation
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» Registration and/or licensing by a financial oversight body or regulator in the country. » Institutional experience and existing arrangements/capacities for on-lending/blending (international/multilateral resources). » Creditworthiness & due diligence policies, processes and procedures. » Ensure financial resource management, including analysis of the lending portfolio of the intermediary. » Ensure public access to information on beneficiaries and results. » Demonstrate investment management, policies and systems, including in relation to portfolio management. » Prove capacity to channel funds transparently & effectively,and to transfer the GCF’s funding advantages to final beneficiaries. » Financial risk management, illustrate governance & organizational arrangements, including relationships between the treasury function and the operational side (front desk).
Section V: On-lending and/or blending
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IFC Performance Standards
A or I-1
High risk
B or I-2
Moderate risk
C or I-3
Low risk
E&S Categories & Risk Screening
https://www.ifc.org/performancestandards
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» The assessment is commensurate to the E&S risk category, more stringent requirements will apply for high/medium category (contrary to a low risk category). » Demonstrate required capacity & experience: identify, categorize, evaluate, mitigate, manage & monitoring E&S risks and impacts related to their projects and activities. » Prove to have ESMS consistent or align with the IFC-PS or similar principles (e.g. Equator Principles, others*). » Entities seeking to be accredited for intermediary functions: demonstrate to have procedures and resources to conduct the E&S due diligence and oversee Executing Entities, and that the executing entities have the capacity and ESMS to fulfill the applicant entity’s E&S framework.
Section VI: Environmental & Social Safeguards
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Element of ESMS Low Risk – Category C/I-3 Medium or High Risk
Policy Not Required. Must be consistent with PS 1-8. Identification of Risks & Impacts Process to screen & categorize risk. Process & implementation track record consistent with PS 1-8. Management Programme Process to identify & manage risks (including unanticipated risks). Process & track record for mitigating identified risk. Organizational Capacity & Competency Staff members able to categorize activities by risks. Clear roles & authority for implementation; includes Senior Management. Monitoring & Review Monitoring for unforeseen impacts or risks. Process for & track record of monitoring mitigation actions; includes Senior Management. External Communications System to register, assess, respond to, and track stakeholder communication.
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implements its Gender Policy and GCF current Gender Action Plan which includes:
» Gender equality + equity + inclusiveness » Accountability for gender and climate change results and impacts » Gender-sensitive competencies throughout GCF’s institutional framework—skills, knowledge and behaviors acquired from training and experience that enable GCF Secretariat staff members to apply a gender-lens throughout their work; and » Equitable resource allocation—so that women and men benefit equitably from GCF’s adaptation and mitigation activities.
Section VII: Gender
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1) Indicate how they mainstream gender considerations in the organization and at project/program level. 2) Demonstrate how their own policies and procedures are consistent with the following GCF gender commitments: » Understand the sociocultural factors underlying climate change-exacerbated gender inequality, and the potential contribution of women and men to societal changes in order to build resilience and the ability to address, climate change. » Adopt strategies, methods and tools to promote gender equality and reduce gender disparities in its climate funding; and, » Measure the outcomes and impacts of its activities on women and men’s.
Section VII: Gender
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Applying for Accreditation
Wha hat you
need to
apply ly*
Nomination Letter from NDA/focal point (for DAEs) Obtain access to the GCF Online Accreditation System (OAS) Complete and submit the Accreditation Application Form through OAS Climate change projects/programmes portfolio Prepare supporting docs (how the entity meets the GCF’s standards) Accreditation application must be submitted in English, as well as relevant supporting
This list is not exhaustive 39
» Priority & commitment at all levels of the institution.
» Have an in-house accreditation team conformed of at least 2-3 persons to exclusively work on the GCF-AP with the support of
» Provision to cover accreditation costs: applicable fee, translation of key docs & human resources (team/personnel) » Maintain institutional flexibility as the GCF is constantly incorporating/updating policies & guideline, time-consuming process and
requires great amount of evidence.
» Be organized and resourceful referencing the supporting documents, one same document can serve as supporting
document of another sections + signal page numbers where relevant information can be found.
» Make sure to identify and label “sensitive or classified documents” as CONFIDENTIAL before submitting them through the OAS.
Tips & recommendations
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Nomination & Institutional Assessment Review & Decision Final validation & Legal Arrangements
Stage I Stage II Stage III
FAO support – Direct Access to Climate Finance
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FAO/NDA accreditation support in North Macedonia
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» Access funding to develop and implement CC-P/P » Support CC-commitments & enhance country ownership » Strengthening institutional framework (international best practices)
Benefits of getting accredited
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The accreditation is barely the “tip of the iceberg”
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SCOPE PE: Open en, , public lic and/ d/or
ivate e poten ential l DAEs
Interested in accessing GCF resources Wish to request an accreditation nomination letter from the NDA
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Eva Rivera, International Accreditation Specialist Eva.RiveraDelCid@fao.org Igor Slavkoski, National Team Leader & Project Coordinator Igor.Slavkoski@fao.org